If a Union Negotiates an Industry-Wide Agreement to Set Wages

Multiple Choice

If a union negotiates an industry-wide agreement to set wages above the equilibrium level,

A) the industry's demand curve for labor will shift inward.
B) there will be a surplus of labor in the industry.
C) there will be a shortage of labor in the industry.
D) there will be neither a shortage nor a surplus of labor in the industry.